Are you contemplating to invest in the cannabis industry? Buying cannabis stocks is no joke. Ideally, you must study the entire industry carefully before buying cannabis stocks.
Statistics are impressive, according to the Marijuana Business Factbook in 2017, legal recreational and medical weed sales in the United States earned revenues of $5.8 billion and $6.6 billion respectively.
Meanwhile, Statistics Canada revealed that Canadians spent roughly C$5.7 billion on cannabis in 2017.
Potential investors can look forward to numerous investment opportunities. Options include penny stocks (over the counter) or shares sold at the NASDAQ stock exchange. You can choose specific fields that present the most potential overall, for example Medical cannabis is more popular compared to recreational weed. Hence, medical weed products and services are the most promising. However, investors must understand the market volatility.
Marijuana investing must not only be confined to producers and retailers, many companies provide supplementary services in this industry. These supplementary services include pharmaceuticals as well as biotech firms manufacturing cannabinoid-based medications. There are also product and service providers previously engaged in clandestine operations. Yet, these enterprises have jumped on the bandwagon after cannabis legalization.
OTC Issue (What is OTC)
Many marijuana enterprises find it difficult to secure a listing in reputable entities like the New York Stock Exchange (NYSE) or NASDAQ. So many Marijuana organisations are opting to utilise OTC exchanges which is causing many challenges. These facilities are taken for granted compared to their legitimate counterparts. Many enterprises have opted to open in Canadian exchanges and others choose to trade in US OTC platforms.
Regular weed users can get some valuable tips prior to buying cannabis stocks. First, conduct extensive research on a company, verify their documents at the SEC as well as other papers that regulatory agencies require. Monitor the latest news about these companies in reputable financial websites.
Find out the amount that you plan to invest, never put in more money than what you can afford to waste and remember marijuana stocks remain unstable because of the legality issue. Determine your timelines. Before buying cannabis stocks, you must know when to purchase and sell. If possible, hire a trustworthy broker to provide the right advice before acquiring your shares.
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